Skype hit with racketeering charges

Skype, the Voice over Internet Protocol (VoIP) provider bought last year by eBay, has been named in a RICO case brought by StreamCast.

According to documents filed with the central court of California, StreamCast Networks is suing Kazaa, Skype, Sharman Networks, and assorted other companies and individuals, claiming they have broken the Racketeer Influenced and Corrupt Organisations Act.

StreamCast developed the Morpheus peer-to-peer network and is accusing Skype, and others, of using its file sharing technology.

Skype founders Niklas Zennstrom and Janus Friis, named in the suit, co-founded Kazaa before setting up Skype.